French luxury conglomerate Kering and Qatari investment fund Mayhoola have refuted recent reports suggesting they are contemplating the sale of their jointly owned fashion house, Valentino. Mayhoola's CEO, Rachid Mohamed Rachid, described the claims as "untrue," emphasizing the company's commitment to its partnership with Kering. A Kering spokesperson declined to comment on the matter. The speculation had initially led to a brief uptick in Kering's share price, which later stabilized following the denial.
In July 2023, Kering acquired a 30% stake in Valentino for €1.7 billion, with an option to purchase the remaining 70% by 2028. This strategic move aimed to bolster Kering's presence in the luxury fashion sector. However, the luxury industry has faced challenges, including a global slowdown in demand and increased financial pressures on companies like Kering. Despite these challenges, both Kering and Mayhoola have reaffirmed their dedication to Valentino's growth and development.
Valentino, established in 1960, has undergone significant changes in recent years. In March 2024, the brand appointed Alessandro Michele, formerly of Gucci, as its new creative director, following the departure of Pierpaolo Piccioli after 25 years. Under Michele's leadership, Valentino is expected to continue its evolution in the competitive luxury fashion market.
The recent denials from Kering and Mayhoola underscore their ongoing commitment to Valentino's future, despite the evolving dynamics of the luxury fashion industry.